*EH1196.1*
March 11, 2025
ENGROSSED
HOUSE BILL No. 1196
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DIGEST OF HB 1196 (Updated March 6, 2025 11:24 am - DI 140)
Citations Affected: IC 8-22.
Synopsis: Membership of aviation boards. Provides that an eligible
entity with a population of less than 38,000 is not subject to the
political party membership requirements for a board of aviation
commissioners or an airport authority.
Effective: July 1, 2025.
Isa, Pressel, Bartels
(SENATE SPONSOR — DONATO)
January 8, 2025, read first time and referred to Committee on Elections and
Apportionment.
January 27, 2025, reported — Do Pass.
January 29, 2025, read second time, ordered engrossed.
January 30, 2025, engrossed. Read third time, passed. Yeas 91, nays 0.
SENATE ACTION
February 18, 2025, read first time and referred to Committee on Local Government.
March 10, 2025, reported favorably — Do Pass.
EH 1196—LS 6623/DI 137 March 11, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1196
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-22-2-1, AS AMENDED BY P.L.104-2022,
2 SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 1. (a) Whenever the fiscal body of an eligible
4 entity adopts an ordinance or a resolution in favor of the acquisition,
5 improvement, operation, or maintenance of an airport or landing field
6 for the entity under this chapter, and declaring a necessity for the
7 airport or landing field, then on the effective date of the ordinance or
8 resolution, there is established as an executive department of the entity
9 a department of aviation, under the control of a board to be known as
10 the board of aviation commissioners.
11 (b) The following apply to a board of aviation commissioners
12 established under this chapter:
13 (1) Except as provided in subsections (e), (f), and (g), the board
14 consists of four (4) members.
15 (2) Except as provided in subsection (e), the executive of the
16 entity shall appoint the members of the board.
17 (3) Except as provided in subsections (f), and (g), and (h), not
EH 1196—LS 6623/DI 137 2
1 more than two (2) of the members of the board may be of the
2 same political party.
3 (c) The fiscal body of the entity may provide a per diem for the
4 members of the board in any amount not exceeding thirty-five dollars
5 ($35) for each whole or part day a member is engaged in board
6 activities. The members of the board shall also be paid their actual
7 expenses, which may include the expenses of the members or
8 employees of the board in attending meetings or conventions held to
9 discuss aviation matters.
10 (d) Before beginning the duties of office, each board member shall
11 take and subscribe the usual oath of office, to be endorsed upon the
12 certificate of appointment, and shall cause that to be filed with the clerk
13 or other officer performing duties similar to that of clerk in the entity.
14 Any person who does not file the oath with the clerk or other officer
15 performing duties similar to that of the clerk within thirty (30) days
16 after the beginning of the term for which the person has been
17 appointed, or at the date of the person's appointment, if appointed after
18 the beginning of the term, is considered to have refused to serve and
19 the office becomes vacant.
20 (e) Notwithstanding subsection (b), if a county having a population
21 of more than two hundred fifty thousand (250,000) and less than three
22 hundred thousand (300,000) has established a board, the county
23 council and the mayors of the two (2) cities in the county having the
24 largest populations may each appoint one (1) additional member to the
25 board, thereby creating a board consisting of a total of seven (7)
26 members. The three (3) additional members serve in the same manner,
27 are accorded the same status, and perform the same duties as the four
28 (4) initial board members, and serve terms of four (4) years. If either
29 the county council or either of the two (2) mayors fails to make
30 appointments to the board, that fact does not prejudice appointments
31 that may be made by the other appointing authority or authorities.
32 (f) This subsection applies to the following:
33 (1) A county having a population of more than one hundred
34 twenty thousand (120,000) and less than one hundred thirty
35 thousand (130,000).
36 (2) A county having a population of more than thirty-six thousand
37 seven hundred (36,700) and less than thirty-seven thousand
38 (37,000).
39 Notwithstanding subsection (b), if a county has established a board
40 under this chapter, the county executive may add one (1) additional
41 member to the board so that the board has a total of five (5) members.
42 Not more than three (3) of the five (5) members of the board may be of
EH 1196—LS 6623/DI 137 3
1 the same political party. The one (1) additional member shall serve in
2 the same manner, be accorded the same status, and perform the same
3 duties as the four (4) initial members, and serve a four (4) year term.
4 (g) This subsection does not apply to a board subject to subsection
5 (e) or (f). Notwithstanding subsection (b), the fiscal body of an eligible
6 entity may adopt an ordinance or a resolution providing that the board
7 consists of five (5) members. If the board consists of five (5) members,
8 not more than three (3) members may be of the same political party.
9 (h) The requirements in this section that not more than a certain
10 number of members of a board of aviation commissioners may be
11 of the same political party do not apply to an eligible entity with a
12 population of less than thirty-eight thousand (38,000).
13 SECTION 2. IC 8-22-3-3.9 IS ADDED TO THE INDIANA CODE
14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
15 1, 2025]: Sec. 3.9. The requirements in sections 4 and 4.3 of this
16 chapter that an eligible entity may not appoint more than a certain
17 number of members of a board of the same political party do not
18 apply to an eligible entity with a population of less than thirty-eight
19 thousand (38,000).
20 SECTION 3. IC 8-22-3-4, AS AMENDED BY P.L.104-2022,
21 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2025]: Sec. 4. (a) Except as provided in subsections (b), (c),
23 (d), (e), (f), and (g) and section 4.3 of this chapter, the board consists
24 of four (4) members, whenever the fiscal body of an eligible entity,
25 acting individually, establishes an authority. Except as provided in
26 subsection (h) and section sections 3.9 and 4.5(f) of this chapter, the
27 members of the board shall be appointed by the executive of the entity,
28 and not more than two (2) members of the board may be of the same
29 political party.
30 (b) In the event that two (2) cities or one (1) city and one (1) town
31 act jointly to establish an authority under this chapter, the board
32 consists of five (5) members. The executive of each city or town shall
33 each appoint two (2) members to the board. The county executive shall
34 appoint one (1) member to the board. Except as provided in section
35 3.9 of this chapter, each member appointed by an executive must be
36 of a different political party than the other appointed member.
37 (c) In the event that an authority is established by a city or town and
38 a county, acting jointly, the board consists of six (6) members. The
39 executive of each entity shall appoint three (3) members. Except as
40 provided in section 3.9 of this chapter, not more than two (2)
41 members appointed by each executive may be of the same political
42 party.
EH 1196—LS 6623/DI 137 4
1 (d) In the event that an authority was established under IC 19-6-3
2 (before its repeal on April 1, 1980) the board consists of five (5)
3 members. Three (3) members of the board shall be appointed by the
4 mayor of the city, and two (2) members of the board shall be appointed
5 by the board of commissioners of the county. Except as provided in
6 section 3.9 of this chapter, not more than two (2) members
7 representing the city may be members of the same political party, and
8 not more than one (1) member representing the county may be a
9 member of the same political party.
10 (e) Except as provided in section 4.1(b)(3) of this chapter, the
11 county executive of each Indiana county that is adjacent to a county
12 establishing an authority under this chapter and in which the authority
13 owns real property may appoint one (1) advisory member to the board.
14 An advisory member who is appointed under this subsection:
15 (1) must be a resident of the adjacent county;
16 (2) may not vote on any matter before the board;
17 (3) serves at the pleasure of the appointing authority; and
18 (4) serves without compensation or payment for expenses.
19 (f) The board of an authority established in the city of Frankfort
20 consists of five (5) members. The members of the board shall be
21 appointed by the executive of the eligible entity. and not more than
22 three (3) members of the board may be of the same political party.
23 (g) This subsection does not apply to a board subject to subsection
24 (b), (c), (d), or (f). Notwithstanding subsection (a), the fiscal body of
25 an eligible entity may adopt an ordinance or a resolution providing that
26 the board consists of five (5) members. Except as provided in section
27 3.9 of this chapter, if the board consists of five (5) members, not more
28 than three (3) members may be of the same political party.
29 (h) If an airport authority is established under this section by the
30 fiscal body of Clark County, the board must consist of four (4)
31 members. Subject to section 4.5(f) of this chapter (concerning the
32 initial members of the board):
33 (1) three (3) of the members of the board shall be appointed by
34 the county executive of Clark County; and
35 (2) one (1) of the members of the board shall be appointed by the
36 legislative body of the town of Sellersburg.
37 The board may consist of five (5) members if the fiscal body of Clark
38 County adopts an ordinance or resolution as provided in subsection (g).
39 Subject to section 4.5(f) of this chapter (concerning the initial members
40 of the board), if the board consists of five (5) members, three (3) of the
41 members of the board shall be appointed by the county executive of
42 Clark County, one (1) of the members of the board shall be appointed
EH 1196—LS 6623/DI 137 5
1 by the fiscal body of Clark County, and one (1) of the members of the
2 board shall be appointed by the legislative body of the town of
3 Sellersburg.
4 SECTION 4. IC 8-22-3-4.3, AS AMENDED BY P.L.192-2015,
5 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 4.3. (a) This section applies only to the board of
7 an airport authority that:
8 (1) is not located in a county containing a consolidated city;
9 (2) is established by a city; and
10 (3) has entered into a federal interstate compact.
11 (b) The board of an airport authority described in subsection (a)
12 consists of members appointed as follows:
13 (1) Four (4) members appointed by the executive of the city in
14 which the airport is located. Except as provided in section 3.9 of
15 this chapter, not more than two (2) members appointed under
16 this subdivision may be members of the same political party.
17 (2) One (1) member appointed by the executive of the county in
18 which the airport is located.
19 (3) One (1) member appointed by the executive of the county
20 (other than the county in which the airport is located) that is
21 closest geographically to the airport.
22 (4) One (1) member appointed by the governor.
23 (c) A member of the board holds office for four (4) years and until
24 the member's successor is appointed and qualified.
25 (d) If a vacancy occurs in the board, the authority that appointed the
26 member that vacated the board shall appoint an individual to serve for
27 the remainder of the unexpired term.
28 (e) A board member may be reappointed to successive terms.
29 (f) A board member may be impeached under the procedure
30 provided for the impeachment of county officers.
31 (g) The board member appointed under subsection (b)(4) serves as
32 the president of the board.
33 (h) On September 1, 2013, the term of each member serving on the
34 board of the airport authority originally established by the city of Gary
35 is terminated. The appointing authorities required to make
36 appointments to the board under this section shall make new
37 appointments to the board as soon as possible after August 31, 2013.
38 (i) Each person appointed by an appointing authority under
39 subsection (b) must have knowledge of and at least five (5) years
40 professional work experience in at least one (1) of the following:
41 (1) Aviation management at an executive level.
42 (2) Regional economic development.
EH 1196—LS 6623/DI 137 6
1 (3) Business or finance.
2 (j) A person appointed by an appointing authority under subsection
3 (b) may not personally have, or be employed by or have an ownership
4 interest in an entity that has, a significant contractual or business
5 relationship with the airport authority.
6 (k) The board of an airport authority described in subsection (a)
7 shall contract with a certified public accountant for an annual financial
8 audit of the airport authority. The certified public accountant may not
9 be selected without review of the accountant's proposal and approval
10 of the accountant by the state board of accounts. The certified public
11 accountant may not have a significant financial interest, as determined
12 by the board of the airport authority, in a project, facility, or service
13 owned by, funded by, or leased by or to the airport authority. The
14 certified public accountant shall present the annual financial audit not
15 later than four (4) months after the end of the airport authority's fiscal
16 year. The board of the airport authority shall pay the cost of the annual
17 financial audit. In addition, the state board of accounts may at any time
18 conduct an audit of any phase of the operations of the airport authority.
19 The airport authority shall pay the cost of any audit by the state board
20 of accounts.
21 (l) The board of the airport authority shall, not later than four (4)
22 months after the end of the airport authority's fiscal year, submit an
23 annual report of the board's activities for the preceding fiscal year to:
24 (1) the budget agency, for review by the budget committee; and
25 (2) the legislative council.
26 An annual report submitted under this section to the legislative council
27 must be in an electronic format under IC 5-14-6. The annual report
28 must set forth a complete operating and financial statement of the
29 airport authority for the airport authority's preceding fiscal year.
EH 1196—LS 6623/DI 137 7
COMMITTEE REPORT
Mr. Speaker: Your Committee on Elections and Apportionment, to
which was referred House Bill 1196, has had the same under
consideration and begs leave to report the same back to the House with
the recommendation that said bill do pass.
(Reference is to HB 1196 as introduced.)
WESCO
Committee Vote: Yeas 12, Nays 0
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COMMITTEE REPORT
Mr. President: The Senate Committee on Local Government, to
which was referred House Bill No. 1196, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill DO PASS.
(Reference is to HB 1196 as printed January 27, 2025.)
NIEMEYER, Chairperson
Committee Vote: Yeas 6, Nays 2
EH 1196—LS 6623/DI 137